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Peregrine Extends CH-6 Kimberlite with Chidliak Drilling

Peregrine Diamonds Unearths Significant Resource Expansion Potential at Chidliak Diamond Project

Peregrine Diamonds Ltd. has announced groundbreaking results from its recent drilling campaign at the 100%-owned Chidliak Diamond Project. Located near Iqaluit, Nunavut, Canada, this project continues to demonstrate its exceptional promise for high-grade diamond discovery. The latest drilling phase, encompassing three critical diamond holes and totaling 1,474 metres, has provided compelling evidence of significantly expanded kimberlite volumes, particularly within the highly sought-after CH-6 kimberlite pipe. These findings are poised to substantially elevate the project’s overall resource potential, affirming Chidliak’s position as a world-class diamond prospect in the Arctic region.

Strategic Drilling Program Delivers Promising Results for Chidliak

The 2017 drilling program at Chidliak was strategically designed to further delineate and expand the known high-grade CH-6 kimberlite, targeting depths beyond the previously established resource base. Each of the three completed drill holes—CHI-050-17-DD36 (DD36), CHI-050-17-DD38 (DD38), and CHI-050-17-DD39 (DD39)—played a crucial role in validating and extending the geological model for this significant diamond-bearing structure. These results are critical as Peregrine Diamonds prepares to recalculate the project’s resource later in the year, anticipating a notable uplift in estimated contained carats.

  • Core Hole CHI-050-17-DD36 (DD36): Refining Kimberlite Orientation

    DD36, a vertical HQ-diameter hole, was drilled to a depth of 378 metres, intersecting kimberlite from 4.5 metres to 295.8 metres below surface (mbs). This intersection aligns perfectly with the existing resource model for the CH-6 kimberlite, providing essential data for microdiamond sampling at depths of 260 mbs and 380 mbs. Crucially, the DD36 results have helped delineate a southward plunge for the northern portion of the CH-6 kimberlite, a finding consistent with previous geological modeling. This improved understanding of the kimberlite’s orientation is vital for precise future mine planning and resource estimation. Furthermore, DD36 also identified a unique, spatially restricted textural sub-unit of CH-6 kimberlite, named KIM-G, occurring at depths between 149 and 189 metres. This discovery adds another layer of detail to the complex geology of the CH-6 pipe.

  • Core Hole CHI-050-17-DD38 (DD38): Confirming Expanded Margins at Depth

    Drilled at a -60-degree inclination for a total length of 560 metres (equivalent to 485 mbs), DD38 was specifically designed to provide a roughly east-west intercept of the kimberlite within the critical 260 to 500 mbs depth range. The hole successfully intersected an impressive 190.2 metres of typical olivine-rich CH-6 kimberlite from 277 mbs to 442 mbs. This result is particularly significant as it confirms and builds upon the in-section findings from the previously reported DD33 hole. The DD38 data has delineated an in-section diameter of 98 metres for the kimberlite within the CH-6 pipe, which is slightly larger than the 90-metre diameter reported for DD33. This expansion confirms that the high-grade CH-6 kimberlite is indeed growing in size with increasing depth, a key indicator for a substantial increase in potential diamond yield.

  • Core Hole CHI-050-17-DD39 (DD39): Extending Kimberlite Continuity Beyond 500 Metres

    DD39, a near-vertical hole extending 536 metres, was engineered to provide an intercept of the known high-grade KIM-L kimberlite from 3.9 mbs to beyond 500 mbs. This drill hole concluded within kimberlite at 532 mbs, definitively confirming that the kimberlite body extends significantly beyond the 500 mbs mark. This depth was the current planned extent of the 2017 resource expansion program drilling. The success of DD39, which consisted almost entirely of KIM-L kimberlite—save for a 32-metre country rock intercept interpreted as a xenolith between 347 mbs and 379 mbs—validates the deep-seated nature and continuity of the high-grade diamondiferous material. This confirmation opens up exciting opportunities for future resource expansion beyond current targets.

Unlocking the Potential of the High-Grade CH-6 Kimberlite

The CH-6 kimberlite pipe stands as the cornerstone of the Chidliak Diamond Project, renowned for its exceptional diamond grades, averaging 2.45 carats per tonne. The latest drilling campaign has significantly enhanced the geological understanding of this vital structure, reinforcing its potential to host a substantial and economically viable diamond resource. The confirmation of expanding margins with depth, coupled with the proven continuity of high-grade kimberlite beyond the 500-metre mark, are critical developments.

Expanding the CH-6 Resource: A Game-Changer for Contained Carats

The expansion of the CH-6 kimberlite’s dimensions, particularly its increasing diameter and confirmed depth, has profound implications for the project’s overall economics. Larger kimberlite volumes directly translate to a greater potential for contained carats—the estimated total weight of diamonds within a given resource. As Peregrine Diamonds moves towards recalculating its resource estimates later this year, the additional kimberlite material identified through this drilling program is expected to provide a significant uplift to the contained carats figure. This not only enhances the project’s attractiveness but also strengthens its long-term viability as a major diamond producer.

Insights from Peregrine’s Leadership on Chidliak’s Future

Tom Peregoodoff, President and Chief Executive Officer of Peregrine Diamonds, expressed immense satisfaction with the drill results. “We are extremely pleased with the drill results to date,” commented Peregoodoff. “It is especially encouraging to see that DD38 confirms the result from DD33 and that the CH-6 kimberlite is expanding in size with depth. This additional kimberlite material could provide a significant uplift to contained carats as we look to recalculate the resource later this year.”

He further highlighted the strategic importance of DD39’s findings: “In addition, hole DD39 confirms the high-grade (average 2.45 carats per tonne) CH-6 pipe continues at depths below 500 metres and provides future resource expansion opportunities. Drilling continues, and with these results, we are confident that we will meet our objective this year of expanding the CH-6 resource below the 260 mbs base of the current Inferred Resource.” Peregoodoff’s statements underscore the company’s confidence in meeting its ambitious resource expansion targets and solidifying Chidliak’s potential as a premier diamond asset.

The Chidliak Diamond Project: A Glimpse into Nunavut’s Diamond Future

The Chidliak Diamond Project is situated on Nunavut’s Baffin Island, a region known for its pristine Arctic environment and challenging operating conditions. Despite the logistical complexities associated with its remote location near Iqaluit, the project holds immense strategic importance for Peregrine Diamonds and the global diamond industry. Nunavut’s geological setting is highly prospective for diamondiferous kimberlites, and Chidliak stands out as a flagship discovery. The project not only promises economic benefits through potential diamond production but also represents a significant opportunity for regional development and employment in Canada’s North, all while maintaining a commitment to environmental stewardship.

Understanding Kimberlite and Diamond Formation

At the heart of diamond exploration lies kimberlite, an igneous rock that originates deep within the Earth’s mantle. This unique rock is the primary host for all commercial diamond deposits. Diamonds themselves are formed under extreme pressure and temperature conditions, hundreds of kilometers below the Earth’s surface. Kimberlite acts as a natural elevator, transporting these precious gems rapidly to the surface through volcanic pipes. The “high-grade” designation of the CH-6 kimberlite indicates a relatively high concentration of diamonds within the rock, making it an exceptionally valuable target for mining operations. The meticulous drilling and geological modeling conducted at Chidliak are essential for understanding the intricate architecture of these kimberlite pipes, which in turn dictates the efficiency and profitability of future diamond recovery.

Future Outlook and Investment Implications

The successful conclusion of this drilling phase marks a pivotal moment for Peregrine Diamonds and the Chidliak Project. The confirmed expansion of the high-grade CH-6 kimberlite at depth, coupled with the robust geological understanding gained from DD36, DD38, and DD39, significantly de-risks the project and enhances its long-term value proposition. Investors can anticipate a positive recalculation of the Chidliak resource, which could attract further investment and partnerships. The prospect of a substantial increase in contained carats positions Chidliak as a compelling growth story in the diamond sector, contributing to the future supply of high-quality diamonds globally. Peregrine Diamonds’ continued systematic exploration and development efforts are paving the way for Chidliak to evolve from a promising discovery into a significant diamond producer.

Conclusion: A Bright Horizon for Chidliak

In summary, the latest drilling campaign at Peregrine Diamonds’ Chidliak Project has yielded exceptionally positive results. The confirmation of the CH-6 kimberlite’s expansion in size with depth, its continued high-grade nature, and its extension beyond 500 metres below surface are transformative findings. These achievements not only validate the substantial potential of this Nunavut-based diamond asset but also set the stage for a significant upward revision in its estimated diamond resource. With ongoing drilling and a clear path toward resource recalculation, the Chidliak Diamond Project is poised to become a cornerstone of future diamond production, promising a bright and prosperous future for Peregrine Diamonds and its stakeholders.